In our last analysis on EURUSD we warned bulls that a bearish signal was given because price had broken out and below the upward sloping channel. It was time for a pull back. Our first target was the 38% Fibonacci retracement which we reached today.
Green lines -Fibonacci retracement levels
EURUSD is now testing the 38% Fibonacci retracement support level. Breaking below it will open the way for a move towards our next target which is the 50% Fibonacci retracement. If price does not bounce from current levels, I expect the pull back to reach even the 61.8% Fibonacci retracement level at 1.1757. Short-term trend remains bearish as price is making lower lows and lower highs. The bearish signal was given yesterday and we remain bearish as long as price is below 1.1910.
